Hello Traders!

In this Video, I want to present the special topic,
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HOW TO DRAW A TRENDLINES,
LIKE A PRO!
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Topic to in this Video
1. USES OF A TRENDLINE
2. HOW TO DRAW TRENDLINE
• Up Trend Line
• Down Trend (Descending) Trend Line

3. BREAK OF A TRENDLINE
4. ADVANTAGES OF IDENTIFYING A TREND by Trend Line

USES OF A TRENDLINE
1. It helps to determine the extremities of corrective phases.

2. It tells us when the trend is changing.

• As long as trendlines are not violated, it can be used to detect buyingor selling areas.

•Very often, the breaking of the trendline is one of the best early warnings of a change in trend.
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HOW TO DRAW TRENDLINES

UPTREND LINE

To draw an uptrend line, you must connect the lowest low to the next higher low in a rally.
Two points are required to draw a trendline and a third point to confirm its validity.

The more number of times this trendline is tested, the stronger will be this uptrend.
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DOWN (DESCENDING) TRENDLINE

To draw a downtrend line, you must connectthe highest high to the next lower high in a decline.
Two points are required to draw a trendline and a third point to confirm its validity.
The more number of times this trendline is tested, the stronger will be this downtrend line.
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BREAK OF A TRENDLINE
The breaking of a trendline is one of the best early warnings of a trend change.

It alerts you about a change in price direction.

Therefore, in an uptrend, a break of the trendline suggests a trend change to the downside and warrants a sell.

Conversely, in a downtrend, a break of the trendline is an early indication of a trend change to the upside and warrants a buy.
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ADVANTAGES OF IDENTIFYING A TREND by Trend Line
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So how can you use trend lines to your advantage?

When the price approaches your trend line, only two things can happen.

• The price could bounce off the trend line and continue the trend.
• The price could break out through the trend line and cause a reversal.

We want to take advantage of that breakout!

The main reasons for identifying a trend are:

1. Much of the BIG MONEY is made in strong trending marketsUP or DOWN.

2. It is the BIG UP MOVES OR DOWN MOVES that make youMOST of the MONEY.
3. You will likely LOSE MONEY trading in a sideways trend. You should STAY ASIDE in a Sideways Trend.
4. You will KNOW when the TREND IS CHANGING.

The importance of identifying the trend and to trade
in the direction of the trend is:

1. To ride the BIG MOVES.
2. Avoid BIG LOSSES
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Is trendline strategy profitable?

Yes, the trendline might be very good for trading, especially if you are a price action trader, but I recommend backtesting your trading ideas.

Apart from the patterns created by the price movement, the two key tools you need for analyzing price action are the trendlines and support and resistance
levels.
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How to Trade Breakouts Using Trend Lines

Just like breakouts on your face, the nice thing about breakout trading in forex is that opportunities are pretty easy to spot with the naked eye!

Once you start getting used to the signs of breakouts, you’ll be able to spot good potential trades fairly quickly.
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Unfortunately, most forex traders don’t draw them correctly or try to make the line fit the market instead of the other way around. In their most basic form,
an uptrend line is drawn along the bottom of easily identifiable support areas (valleys).This is known as an ascending trend line.

In a downtrend, the trend line is drawn along the topof easily identifiable resistance areas (peaks).This is known as a descending trend line.
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